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Taylor has owned and occupied her personal residence (adjusted basis of $190,000) for four years. In April 2015, she sells the residence for $300,000 (selling expenses are $20,000). On the same day as the sale, Taylor purchases another house for $350,000. Because of noisy neighbors, she sells the new house after just 10 months. The selling price is $483,000 (selling expenses are $18,000). a. What is Taylor's recognized gain on the sale of the first residence? b. What is Taylor's basis for her second residence? c. What is Taylor's recognized gain on the sale of the second residence?

Taylor has owned and occupied her personal residence (adjusted basis of $190,000) for four years. In April 2015, she sells the residence for $300,000 (selling expenses are $20,000). On the same day as the sale, Taylor purchases another house for $350,000. Because of noisy neighbors, she sells the new house after just 10 months. The selling price is $483,000 (selling expenses are $18,000). a. What is Taylor's recognized gain on the sale of the first residence? b. What is Taylor's basis for her second residence? c. What is Taylor's recognized gain on the sale of the second residence?

SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 41CE
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Taylor has owned and occupied her personal residence (adjusted basis of $190,000) for four years. In April 2015, she sells the residence for $300,000 (selling expenses are $20,000). On the same day as the sale, Taylor purchases another house for $350,000. Because of noisy neighbors, she sells the new house after just 10 months. The selling price is $483,000 (selling expenses are $18,000). a. What is Taylor's recognized gain on the sale of the first residence? b. What is Taylor's basis for her second residence? c. What is Taylor's recognized gain on the sale of the second residence?
Transcribed Image Text:Taylor has owned and occupied her personal residence (adjusted basis of $190,000) for four years. In April 2015, she sells the residence for $300,000 (selling expenses are $20,000). On the same day as the sale, Taylor purchases another house for $350,000. Because of noisy neighbors, she sells the new house after just 10 months. The selling price is $483,000 (selling expenses are $18,000). a. What is Taylor's recognized gain on the sale of the first residence? b. What is Taylor's basis for her second residence? c. What is Taylor's recognized gain on the sale of the second residence?
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